In Monetarist Business Cycle Theory, Increases in Money Growth Temporarily__________

question 192

Multiple Choice

In monetarist business cycle theory, increases in money growth temporarily__________ real GDP and __________the price level.

• A) decrease; rise
• B) decrease; lower
• C) increase; lower
• D) increase; rise

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Definitions:

Limbic System

A complex system of nerves and networks in the brain, involved with instinct and mood. It controls basic emotions (fear, pleasure, anger) and drives (hunger, sex, dominance, care of offspring).

Hard-to-classify Child

A child whose behavior, needs, or characteristics do not neatly fit into conventional categories or expectations.

Slow-to-warm-up

Refers to a temperament observed in some children who tend to be cautious and less adaptive in new situations but gradually become more comfortable with time.

Responsiveness

The quality of reacting quickly and positively to changes or stimuli.